[THE INVESTOR] SK Telecom’s earnings from the fourth quarter last year have missed the market consensus, KB Investment and Securities said on Feb. 6, maintaining a “hold” recommendation and lowering the target price to 290,000 won (US$264.36) from 320,000 won.
Its operating profit was dragged down by its wireless business and SK planet division, and the two sectors will continue to plague the telecommunications heavyweight, analyst Kim Jun-seob said.
As SK’s wireless business will continue to struggle from the adverse market conditions, the firm will need to come up with a plan to stimulate SK planet, whose operating loss in the previous quarter stood at 100 billion won, similar to a year ago, the analyst noted.
SK broadband, meanwhile, will maintain steady growth as the number of subscribers to its IPTV service increases and revenue from paid contents rises, forecast Kim.
By Hwang You-mee (firstname.lastname@example.org)